03 April 2025
Regal Rexnord emerges as market leader as energy transition and mining cycles drive sector evolution
Over the past three years, the industrial components market for couplings, clutches, and brakes (CCB) in Australia and New Zealand has undergone a subtle but significant transformation. While the industry has traditionally been conservative and fragmented, 2024 marks a new era defined by global consolidation, steady demand recovery, and the rise of new growth sectors like renewable energy. The landscape is shifting, and the once-predictable market is now full of opportunity and challenge.
Market Size: Steady growth with cyclical ups and downs
Estimating market size is challenging because there are few published sources, however import statistics provide a good guide since almost all CCB components are imported. An increasing number of CCB components arrive in Australia either in complete machines (such as power generation wind mills) or in modular drive systems (typically drive systems for conveyors or cranes consisting of electric motor, control systems, gear box, couplings, and brakes). CCB components already fitted to such machinery are not included in the market estimate below.
However, there is a replacement market for imported machinery which is included in the CCB components market estimate. Global companies create regional market opportunities for CCB components for repairs and maintenance through selling drive systems (solutions) that include these components. Part of their value proposition is having the global distribution to support end-user markets from in-country wholly owned sales operations or through distributors.
Thus there are two distinct markets for CCB components:
- Supplying drive couplings, clutches, and brakes to Australian machinery manufacturers (integrators)
- Supplying spare parts for machinery maintenance and repair (replacement market).
In 2024, the combined CCB market in Australia and New Zealand is estimated at AUD $160 million (based on sales price paid by customers to import distributors in Australia), up from approximately AUD $129 million in 2021. This growth, while modest in annual terms (around 5% CAGR), reflects broader macroeconomic trends and sector-specific shifts.
Australia remains the dominant player in the region, accounting for approximately 87.5% of the combined market. Its 2024 CCB market stands at around AUD $140 million. New Zealand, while smaller, has also shown consistent growth, rising from approximately AUD $15 million in 2021 to around AUD $20 million in 2024.
This upward trajectory over the past decade is not surprising given Australia's deep industrial base, especially in mining, infrastructure, and energy. However, the story isn’t one of unbroken acceleration: the market experienced a strong recovery in 2022 following the pandemic-related downturn, only to see some cooling in 2024 as mining capital expenditure softened.
CCB components - industrial couplings, clutches, and brakes
For the uninitiated, CCB Components (Couplings, Clutches, Brakes) are essential mechanical elements used in industrial drive systems to transmit, control, and interrupt motion or torque between rotating shafts.
- Couplings: These connect two rotating shafts to transmit torque while accommodating some degree of misalignment, movement, and absorbing torsional shock. They are used in power transmission systems to link motors to gearboxes, pumps, conveyors, and connecting any machine with a driving shaft to any other machine with a driven shaft. Common types include rigid, flexible, highly flexible, and fluid couplings.
- Clutches: In industrial drive systems, clutches often refer to anti-rollback clutches or backstops, which are devices that allow rotation in one direction only. Their primary function is to prevent reverse motion, acting as a safety mechanism in applications like inclined conveyors, bucket elevators, and hoists. Like the ratchet on a bicycle they permit rotation in one direction only. They help avoid equipment damage and ensure operator safety.
Backstops on conveyors prevent the material weight from rolling back the belt
- Brakes: Brakes are used to slow down, stop, or hold a rotating shaft by applying friction usually to a drum or disc. Linear motion brakes apply friction to a rail. Industrial applications include cranes, wind turbines, and conveyor systems. Types include disc brakes, drum brakes, rail brakes and fail-safe electromagnetic brakes. Broadly classified as service brakes (used frequently in normal operation) and emergency brakes. Brake variants are activated hydraulically, pneumatically, electromagnetically, and manually.
Mine shaft winch brake
Together, these components play a vital role in the safe, efficient, and precise control of mechanical power in a wide range of industrial applications.
While components with similar names (drive coupling, clutches, and brakes) are ubiquitous in motor vehicles and small machinery, the context of this article is drive system components used in medium to very large applications like conveyor belts, crushing mills, large waste water pumping systems, coupling ship diesel engines to propeller drive shafts and drive trains, couplings and brakes used in the drive heads of giant power generator wind turbines, and a wide range of other medium to high power applications.
Industrial drive components are typically fitted to large to very large machinery where power and forces are huge thus specifying such products requires engineering input to ensure optimal specification balancing application, safety, serviceability, reliability, and of course cost.
Suppliers into these markets require sales teams with technical knowledge, and marketing largely consists of making technical information and engineering assistance available.
Specification and application vary widely making it difficult to hold in stock a full range of each SKU and (particularly at the larger end of the range) CCB components are only manufactured to order. Lead times can be months. Almost all CCB products are manufactured overseas. Freight times can be an added issue.
Industrial couplings, clutches, and brakes - a plethora of brand names and confusion
In each of these product categories there are multiple offerings. Across all categories the main brands are:
Ameridrives, Autogard, Bibby, Browning, Coremo Ocmea, Custom Fluidpower, David Brown Santasalo, Dellner Bubenzer, DESCH, Dodge, Eaton Airflex (Danfoss), Falk, Flender, Jaure, KopFlex, KTR, Lovejoy, PT Tech, Regal, Renold, Rexnord, Ringfeder, Ringspann, Stearns, Stromag, Svendborg, TB Wood’s, Tschan, Timken, Twiflex, Voith, Vulkan, Warner, Wichita, and Winergy.
Each of these brands has strong association with certain CCB components Svendborg for brakes for example, Flender for drive couplings, Ringspann for backstops, Voith for fluid couplings, and Vulkan for marine diesel engine couplings. Other brands are strongly associated with certain industries for example Dellner Bubenzer for crane brakes.
The CCB industry is highly fragmented with many manufacturers and brands covering a wide variety of industries and specialist applications.
Add to this the potential confusion between manufacturer names, product names, and even distributor names.
The brand name confusion is evident in market research when respondents (specifiers, purchasing officers, and end users) are asked to nominate brands they recognize; will quite often pick well-crafted fictitious names that have been included in the list.
Mergers and acquisitions over the years has reduced the fragmentation of suppliers but may (untested) have added to the confusion of brand names.
With most of the product brands having a strong following (and brand strength) in specialized niches, acquisition brings with it a conundrum - how to reduce the brand confusion without losing the brand equity many brands have built in niche markets?
Best practice seems to be retaining the acquired brand name and even the acquired company website for fear of losing market share.
Industrial couplings, clutches, and brakes - Industry consolidation
Over the past decade, the industrial drive components sector—encompassing couplings, clutches, and brakes—has witnessed several mergers and acquisitions that have reshaped the industry landscape. Below is a compilation of notable transactions, including instances where acquired companies were subsequently integrated into larger entities, illustrating the cascading nature of these consolidations:
(It should be noted that all of these mergers and acquisitions have been at a global level. However, this article reflects on the effect of these changes to the Australian market).
Altra Industrial Motion Corp. Acquisitions:
Prior to itself being acquired by Regal Rexnord, Altra Motion had undertaken many acquisitions scooping-up many desirable brands...
- Svendborg Brakes A/S (2013): In December 2013, Altra acquired Svendborg Brakes, a Danish manufacturer specializing in caliper brakes, enhancing Altra's presence in the industrial braking market.
- Stromag (2016): On December 30, 2016, Altra completed the acquisition of Stromag from GKN plc. Stromag, based in Germany, produced clutches, brakes, and couplings, further diversifying Altra's product offerings.
- Fortive's Automation and Specialty Business (2018): In 2018, Altra expanded into medical, robotics, and factory automation by acquiring four operating companies from Fortive's Automation and Specialty business, broadening its technological capabilities.
The Timken Company Acquisitions:
- PT Tech, Inc. (2017): In May 2017, Timken acquired PT Tech, a manufacturer of engineered clutches and brakes, adding to its mechanical power transmission portfolio.
- Torsion Control Products (2017): In April 2017, Timken acquired Torsion Control Products, broadening its couplings product line and enhancing its offerings in torque management solutions.
Dellner Brakes Acquisition:
- Gummi USA (Spet 2017): Swedish-based Dellner Brakes acquired Gummi USA, a US brake and clutch company, consolidating its position as a leading supplier in the industrial and marine markets.
Ringfeder Power Transmission Acquisition:
- Carlyle Johnson Machine Company (2021): In December 2021, Ringfeder acquired Carlyle Johnson, a US-based designer and manufacturer of motion control components, including clutches and braking systems, expanding its product range.
Regal Rexnord Corporation Acquisitions:
- Rexnord's Process and Motion Control Segment (2021): In October 2021, Regal Beloit Corporation merged with Rexnord's Process and Motion Control segment, forming Regal Rexnord Corporation, a significant player in power transmission components.
- Altra Industrial Motion Corp. (2023): In March 2023, Regal Rexnord completed the acquisition of Altra Industrial Motion Corp., integrating Altra's extensive range of couplings, clutches, and brakes into its portfolio.
These transactions (while not an exhaustive list) exemplify the consolidation trends within the industrial drive components industry, where companies have strategically acquired others to expand their product lines, enter new markets, and enhance technological capabilities.
Industrial couplings, clutches, and brakes - Key Market trends and structural shifts
Market consolidation and the Rise of Regal Rexnord
The biggest single change to the CCB market in recent years has been the wave of mergers and acquisitions.
The most impactful was Regal Rexnord's acquisition of Altra Industrial Motion in 2023. This merger brought together powerhouse brands including Rexnord, Falk, Svendborg, Twiflex, Stromag, and Bibby under one roof.
As a result, Regal Rexnord now holds an estimated 30% market share in the ANZ CCB sector, making it the undisputed market leader. This consolidation has fundamentally reshaped competition. Previously, Regal and Altra competed across overlapping product categories, but now they dominate the brakes segment (with Svendborg and Twiflex) and maintain strong positions in couplings and clutches.
While this undoubtedly strengthens Regal Rexnord's position, an unwanted side effect may be the need for procurement departments to seek alternative quotes from a broader range of previously excluded suppliers outside of the Regal Rexnord brand stable.
Regal Rexnord also supplies a comprehensive range of other drive system components including modular drive systems, control systems, electric motors, power-train engineering and packaged solutions. This is a trend amongst the larger global players in the industrial drive system space providing (in theory) the ability to build a brand around being "solution providers" thus able to find additional margin by avoiding just selling components where it is easier for procurement people to play supplier A off against supplier B and C.
Further, global drive train supply companies work hard in overseas markets to have their drive systems (including CCB components) specified into OEM equipment creating a market for spare parts in destination markets like Australia. Plant maintenance people would be reluctant not to replace worn components with the originally specified SKU.
Supply chain and pricing pressures
2022 and 2023 saw the lingering impacts of global supply chain constraints, particularly for industrial OEMs. Lead times stretched, prompting many customers to turn to alternative suppliers or pre-order components in bulk. This had two effects: short-term spikes in demand and the entry of some secondary or substitute brands into long-standing customer relationships.
While the worst of the disruptions have passed, supply chain resilience has become a critical factor in CCB purchasing. OEMs and end-users alike are placing a premium on fast availability, local support, and reliable logistics.
Shift in vertical demand
Mining remains the largest single industry vertical for CCB demand, contributing approximately 30% to 35% of total sales. However, the pace of mining investment has cooled, with a 4% decline in capital expenditure projected for 2024. This is prompting many CCB suppliers to look beyond their traditional base.
The standout growth sector is renewable energy. The boom in wind energy investment across Australia has significantly increased demand for wind turbine brakes, rotor locks, and couplings. While still representing less than 10% of the total market, the renewables sector is growing rapidly and is expected to double its share in the next five years.
Other strong verticals include materials handling and logistics (especially port and warehouse infrastructure), food & beverage processing, water/wastewater, and defense.
Industrial couplings, clutches, and brakes - Competitor landscape: moderate consolidation, niche competition
The CCB market is now moderately consolidated, with the top five suppliers accounting for nearly three-quarters of the market. While market shares are very difficult to estimate, the competitive hierarchy in 2024 is likely as follows (totalling 75% of the market).:
- 1. Regal Rexnord (incl. Altra Motion) Market leader. Supplies across all categories.
- 2. Flender~ dominant in couplings
- 3. Renold ~ significant in all CCB component categories.
- 4. Ringspann ~ dominant in backstops (anti rollback clutches) and brakes
- 5. Vulkan ~ dominant in marine couplings
Others (Tsubaki, Dellner Bubenzer, Airflex, Lovejoy, Dodge, KTR, etc.) – combined 25%
Each competitor has carved out a niche. For example, Dellner Bubenzer specializes in heavy-duty brakes for ports and wind turbines, while Renold maintains its historical presence in mill drives and sugar processing equipment. Flender continues to dominate large industrial coupling solutions, especially in mining and energy (Winergy brand). Vulkan dominates marine highly flexible elastomeric couplings.
New entrants are rare, as this is a market where reliability and brand recognition carry enormous weight. However, smaller players continue to serve niche applications and replacement markets.
Product segmentation
The market can be broadly segmented into four main product categories:
- Drive Couplings: The largest product group, accounting for nearly 60% of market value.
- Industrial Brakes: Estimated at 20% to 22% of the total market, especially strong in mining and materials handling.
- Clutches and Backstops: Represent around 17% of the market, used in heavy machinery and mobile applications.
- Fluid Couplings: A specialized category but essential in conveyor systems and mills around 1% of sales.
Industrial couplings, clutches, and brakes - Industry verticals: The core of the market
Drive components: end-user markets
Based on market share and growth forecasts, the top-performing sectors in 2024 are:
Mining and Mineral Processing: Still the largest sector, though growth is tapering.
Material Handling and Cranes: Driven by logistics and port infrastructure upgrades.
Renewables (Wind, Hydro): The fastest-growing sector, especially wind energy.
Food & Beverage Processing: A stable and recurring revenue stream.
Defense and Marine: A niche but growing area due to increased government investment.
Each of these sectors demands a unique go-to-market strategy. For instance, mining and ports rely heavily on OEM partnerships and local maintenance contracts, while renewables may require coordination with global wind turbine manufacturers and aftermarket service providers.
It should be noted that reaching end-markets is both direct (selling spares for repairs maintenance) and indirect by selling to machinery manufacturers that supply these end-user markets.
Industrial couplings, clutches, and brakes - Where will growth come from?
Renewable energy: was a promising growth engine for the next five years. Wind turbines require both braking and coupling solutions, and the rapid expansion of wind farms in Australia is driving up component demand. With over 7.5 GW of new large-scale wind and solar capacity added in 2024 alone, this sector is forecast to grow at more than 10% per year. However, with a federal election just weeks away - who knows? The renewable energy sector is ideologically driven and that ideology is being challenged. However, should further investment in wind farms be curtailed under a coalition government (assuming they are elected) it's unlikely existing wind farms will be dismantled. They will require sustainment and that means a steady market for CCB components. In any case, wind turbine nacelles arrive into Australia fully assembled (but, there is some local manufacturing).
Materials handling and logistics: will also expand, driven by the rise in e-commerce and ongoing investment in port and freight infrastructure. This includes conveyors, automated warehouses, and ship loaders – all intensive users of CCB products. Cranes, conveyors and other materials handling equipment are manufactured in Australia.
Other emerging drivers include:
- Hydrogen and battery minerals sectors in mining. Although Hydrogen is now in doubt, and the future of battery minerals is in doubt due to falling demand for electric vehicles. However this might by surpassed by an urgent focus on strategic minerals.
- Naval shipbuilding: likely to see substantial increase in the future because our surface Naval fleet is old and not up to the task. However, Naval planning, procurement, and design engineering is glacial and even if the funding decision was made today manufacturing requiring purchase of CCB components would be at least 5 years away. However, demand may increase due to the need to ramp-up sustainment work (keeping existing ships seaworthy) that has been severely curtailed under the Labor Government.
- Water industry upgrades tied to population growth. This will require investment in pumps and machinery used in water reticulation systems and water treatment plants.
Challenges and considerations
Aftermath of supply disruptions:
Despite the generally positive outlook, challenges remain. The industry is still navigating the aftermath of supply chain disruptions. Inflation in raw material prices and increased labor costs may pressure margins. Additionally, the pace of energy transition projects can be unpredictable due to policy, financing, or grid constraints.
The Donald Trump factor:
The Trump administration is creating global turmoil (likely and hopefully temporary) as it aims to re-set the global order by weaponizing tariffs. This will have a short term impact on manufacturing costs particularly for US based CCB suppliers. Global companies like the extended Regal Rexnord group have manufacturing facilitates in many countries and complex supply chains - some of which include sub-components manufactured in China but likely also in Mexico, India, Eastern Europe, and other SE Asian countries. Very difficult to predict the overall net effect.
Mining investment:
Further investment in mining is likely to be dampened by slowing Chinese demand. However, there is much unpredictability with demand for strategic minerals likely to be strong as the US forces Australia to fast-track mine development (using defence and trade tariffs as leverage) to overcome China's strangle hold on critical minerals.
Big deals versus small deals
The challenge (or is it really the main opportunity) for global players is not about chasing one 'sies and two 'sies CCB sales orders, they come in the form of spare parts, it's about selling large equipment supply orders for fully integrated solutions where CCB components play an important but minor role. This means focusing on major projects, Tier 1 companies and ECPMs. Smaller players will however focus on providing exceptional service to the many local mining service companies and equipment manufacturers across all sectors. If the economy becomes more constrained and major projects dry-up then global players will need to unseat smaller suppliers already established in the smaller niche markets.
Digital transformation:
Another consideration is digital transformation. Many customers now expect online configurators, real-time inventory visibility, and digital documentation. Suppliers slow to adopt digital tools may lose ground to more agile competitors.
Brand complexity and constrained local marketing budgets:
Finally, there is the challenge of brand complexity. With mergers bringing multiple legacy brands under one roof, companies must manage internal brand architecture without confusing customers or losing legacy loyalty.
Sales forces need to be re-educated and motivated to cross-sell brands in order to capitalize on the "house of brands" strategy (an easy concept to discuss on the planning room whiteboard but one that might get lost on the way to the selling front line).
Sales activity will likely be the dominant method for achieving message delivery because Australian based subsidiaries will have their local marketing budgets constrained by head offices focused on "global brand strategies" and central marketing control. Global companies (particularly USA and European) exhibit this behavior across many technical product markets and seem immune to the "but the local market is different" proposition.
Industrial couplings, clutches, and brakes: A market in motion
The CCB market in Australia and New Zealand has entered a new phase. While historically fragmented and slow-moving, the last few years have brought about consolidation, new technologies, and the rise of high-growth verticals.
Regal Rexnord now sits at the top of the competitive ladder, benefiting from a diverse portfolio of not just CCB products but associated drive systems and broad distribution network. Yet, the market remains open to specialized players who can deliver exceptional engineering, availability, service, and local marketing.
Looking ahead, the winners in this market will be those with the agility to adapt to changing industry needs, invest in strategic growth sectors, and maintain strong relationships across OEMs, integrators, and end-users.